>>megyn: final thought on gw university, they say it was an ker reported and they are the ones that reported it and they say they will be ranked again with world news report next year. >>trace: the news begins anew tw on on "studio b." and now, what could be a new war with fighters in gaza with israel, israel could soon mobilize tens of thousands of reserve drops. it comes after rockets targeted jerusalem for the first time in decades. general petraeus testified to lawmakers today about the deadly attack in libya and whether he believed it was an act of terrorism. but that is just raising new questions on capitol hill. 18s are -- answers are coming up. another oil rig explosion in the

gulf of mexico two years after the horizon disaster. several workers were sent to the hospital and others are missing. that is all ahead unless breaking news changes everything. on "studio b" today, we begin with fox urgent and deadly violence between israel and gaza taking a new and dramatic attorney when a rocket from gaza targeted the holy city of jerusalem for the first time in four decades. men, women, and children took shelter in homes and businesses. the sigh republicans wailed. israeli police say the missile landed outside the city. jerusalem is also home to hundreds of thousands of palestinians. air sirens in tel aviv, wailed for the second day after rockets passed that city. in response the israeli military

reports they are now closing three roads that lead to or border along gaza. sources tell reuters the army has asked the government for the green light to shore up 75,000 reserve troops. ahead of a potential ground invasion of gaza, the deadly airstrike campaign continues. at the height a spokesman said the military conducted one strike every five minutes. officials suggest a truce is possible ending the violence that has killed dozens. the israeli president said today and i quote, "it is not our intention to go to war. we are hopeful this operation will not take a minute more than required." david lee is live along the israel border with gaza. >>reporter: we are only a few hundreds yards from the gaza border and i can hear israeli military aircraft and the israeli government continuing to

make plans for what could be a ground invasion. there are now plans to mobilize up to 75,000 reservists. 16,000 have been called up. now it is common to see armored personnel carriers and heavy equipment moving in the direction of the gaza and israeli border. israel is ratcheting rhetoric and an israel spokesman said the current activists will continue until "hamas begs for a ceasefire." some analysts say israel behind-the-scenes is still working toward a diplomatic solution but with each passing second that seems less and less likely. so far, 24 palestinians have been killed and the most recent airstrikes continue to go after the targeting locations for the long and medium-range rockets. they are also hitting smuggling

tunnels in gaza. today there was rocket fire in the city of jerusalem with sirens wailed. there were no injuries. the two rockets fell in an empty field but residents panicked. many residents fled to shelters that have not been used for decades. for the second day in a row, israel's largest city, tel aviv, also came under rocket fire and the rocket landed in an unoccupied area and in tel aviv residents are very concerned about the increased range of the rockets being fired from gaza. it is interesting to note that now more than half of israel's population is in range of the rockets. there have been at least 150 rockets fired in the last 24 hours and half of them have been intercepted by israel's defense

system. there are now plans to expand the system. there are now four batteries in place with another planned. the israelis would like to increase the number if the conflict continues to escalate. >>trace: with a million israelis in bomb shelters, david lee miller live in late evening on the gaza border. we will have more reaction coming up inside "studio b" including what this means for the u.s. relationship with egypt. but, first, the former c.i.a. director, general petraeus, today, testified on the deadly attack in benghazi, libya, that killed four americans, including our ambassador. the hearings happened hype closed doors so we do not have recordings of the general's testimony. according to the republican congressman peter king of new york he said from the beginning

he believed benghazi was a terrorist attack. the c.i.a.'s talking points also called it terrorism. congressman king added, someone or some group, then, removed the terror reference but it is not clear who did that. >> the original talking points...there were indications finally at the end indications of extremists although there was cheerly evidence to the c.i.a. that it was clear there were pirates involved. susan rice said a spontaneous protest over an anti-islam video sparked the attack but democratic lawmakers say that can be explained. >> what is very clear is that ambassador rice used the talking points the intelligence committee had all signed off on. >>trace: they added that the

c.i.a. approved the talking points and it is unclear who changed them before ambassador rice made them public. catherine has the news from capitol hill. what do we know about the changing language in the talking points? >>reporter: thank you, trace. a short time ago the former c.i.a. director, david petraeus, left capitol hill after about five hours of testimony, closed classifyied testimony before the house and senate intelligence committee and a take away was the unclassified talking points put together by the c.i.a. a congressional source told fox the language was changed from the original draft which included the language "al qaeda affiliated" with a later version saying "extremist organizations." they believed this was an effort to down play the terrorism angle in the attack. the points went there an interagency review including the

department of justice, the state department, other intelligence agencies, as well. at the end of the day you have a final document with a real difference of opinion on capitol hill. we heard from republicans they felt the changes were driven by political considerations. what we heard from democrats is that it was simply driven by the process. >>trace: we heard the head of the senate intelligence committee, did they say whether they think the changes were political? would report it played out along the same lines we heard from senator feinstein who is the chair of the senate intelligence committee and her ranking member who said his problem is ambassador rice went beyond the talking points themselves. >> she went beyond that. she mentioned that under the leadership of president obama we had decimated al qaeda. she knew at that point in time that al qaeda was very likely

responsible in part or in whole for the death of ambassador stevens. >> i think ambassador rice has been treated unfairly. >>reporter: if you put to one side the disagreement and the noise today, there is an important fundamental finding. what the former c.i.a. director said is that he believes right out of the gate that benghazi was a terrorist attack. we were told from a congressional source that ten days after the attack, september 21, there were no lingering doubts about the fact that it was terrorism. it was after the 21st that president obama was reluctant to use the word "terrorism" and said that the investigation was ongoing. >>trace: a lot of questions. thank you, catherine, from capitol hill. lawmakers who were in the hearings are now responding from both sides of the political aisle and we will hear from both sides coming up and president

obama and the house speaker at the same table. again. are they any closer to banging out a deal as the clock ticks down to what analysts say could be an economic disaster? [ male announcer ] this is sheldo whose long day setting up the news starts with arthritis pain and a choice. take tylenol or take aleve, the #1 recommended pain reliever by orthopedic doctors. just two aleve can keep pain away all day. back to the news. campbell's has 24 new soups that will make it drop over, and over again. ♪ from jammin' jerk chicken, to creamy gouda bisque. see what's new from campbell's. it's amazing what soup can do.

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>>trace: democratic lawmakers are pushing back against suggestions that the u.s. ambassador to the united nations, susan rice, misled the public when she said the deadly attack in benghazi grew out of a protest. as we reported earlier the former c.i.a. director, general petraeus, reportedly told lawmakers this morning from the start the c.i.a.'s report on benghazi pointed to terrorism. but someone or some group later changed the language of the talking points that ambassador rice made public. democrats say that is because she was going off the initial unclassified report from the intelligence community. >> the c.i.a. prepares additional talking points which

go through the various components of the intelligence community. those components either sign off on them, discuss them and, i believe, the intelligence community signed off on the talking points. >>trace: the accusations against ambassador rice have big implications. she is considered a potential nominee for secretary of state. we have a republican member of the house of representatives intelligence committee. congressman, you heard what senator feinstein said. help us connect the dots. we know that general petraeus categorized this after 24 hours as being a "terrorist attack with elements of al qaeda involved" and someone, we don't know who, changed the language and took out "al qaeda" and inserted "extremist." by the time susan rice got to sunday shows this is, no it was not a pre-planned attack.

there was a glitch. >>guest: certainly. the product initially produced by the c.i.a. at the request of the house of representatives intelligence committee for unclassified talking points originally had the phrase "al qaeda affiliated groups" and the word "attack" in the talking points. when they left the c.i.a. building and went to the process, changes were made. but who made the changes. why? that did change the tone of that statement if it was used by ambassador rice. we do not know what talking points the ambassador used on sunday. >>trace: back to the changes, congressman. you do not know who made the changes to the c.i.a. statement. would has the authority to change something like that? that is from a high level? who can go in there and take a black marker and take this out. who has that authority?

>>guest: we know once the product was produced and left the c.i.a. building it went through multiple other intelligence community partners and to their public affairs offices and it went to the deputy committees which met on saturday. they were already scheduled to meet on other issues and they reviewed the talking points and in the final product, it was delivered to the house intelligence committee on saturday afternoon. we are uncertain who briefed ambassador rice prior to her appearance and which talking points she was working from. they may not have been the talking points provided to the house of representatives intelligentsia the >>trace: people are taking a little bit of an issue with the statement that ambassador rice made when she said and i quote, "by the best estimate our intelligence says this was not a pre-planned attack." a lot of people say, look, that was not the best estimate because david petraeus gave the best estimate that it was a

pre-planned terror attack.: >>guest: that assess mat was made soon after the attack that there was a deliberate posture to the attack and that this were elements of preplanning involve ed. that was available the first 24 to 48 hours after the attack took place. >>trace: thank you, congressman. fair balanced we go to a democratic member of the house of representatives intelligentsia, congressman from california. welcome, sir. i am not sure if you heard what the congressman was saying but it seems to be the theme from the republicans saying, look, this is confusing, and someone took a very key piece of wording out the c.i.a.'s talking points and it changed the entire theme dramatically. your response? >>guest: first of all, there was never any draft that said it

was a pre-planned terrorist attack so that was not part of the draft. there were changes in the intelligence community process. the most important point and general petraeus made this clear, the changes made were made to protect classified information. they did not want to be specific as to the precise group they thought was responsible. or groups. there could have been multiple groups involved. it was done to protect whiched information. he was very cheer this was never done for political purpose. this wasn't manipulated by the white house. all of the conspiracy theories this was done to frame this in a way the white house wanted were debunked by the general. other point that was clear and i asked the general about this, with respect to the u.n. ambassador, whether she was operating in a precise talking point or not and i asked the general were the talking points we got, that you ultimately

signed off open, were they an accurate assessment of the best information at the time that protected classified information and he said "cre." i asked, to the degree that the ambassador's remarks reflected those talking points and if you look and compare them, they are almost identical, was she giving us the best intelligence estimate at the time and his answer was "yes." >>trace: but is that accurate? how is it that protecting classified information turns out to be something where ambassador rice goes on to the five sunday shows and if she is protecting classified information, how do you turn that around where she delivers inaccurate information to the entire country? at that time the information she gave was inaccurate. >>guest: well, the best intelligence the community gave us and gave the ambassador was wrong and the general admitted it was wrong. >>trace: because someone changed it? >>guest: no, no, no, the raw

intelligence and information they gave us, that the general gave us in person, they gave us in the written assessment said it began as spontaneous protest that was wrong not something that susan rice invented but something the intelligence community thought at the time and they were wrong. the idea that they thought something different and that the ambassador departed from that is not true. the general, today, made it clear that was not true. the general had to acknowledge that he and the i.c. got it wrong, they thought it was spontaneous and it was terrorism because by definition you are shooting mortars at an american diplomatic post. that is terrorism. the question, though, was it premapped? should we have soon it coming? that is something the general did not know at the time. to suggest they knew initially,

the general or whoever knew, that is not the case. >>trace: from these intelligence hearings we can tell you that the democrats and the republicans came away with entirely different conclusions about exactly what happened. sir, thank you for your time. >>guest: thank you. >>trace: we will have more on this with chris wallace who was the man who sat there while ambassador rice gave the story about the best intelligence at the time. we will talk to chris later. new evidence in the horrific train crash in west texas, a train slamming into a parade float filled with war heroes. a close knit community asking, how could this happen? the investigators find their first clues from the scene.

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>>trace: and a horrific train wreck involving military veterans yesterday evening in midland, some 300 miles west of dallas-ft. worth. investigators say a freight train slammed into this flatbed carrying the vets and their families to a banquet. four servicemen died and more than a dozen other people got hurt. one of victims, army sergeant michael, his mother-in-law says the purple heart winner pushed his wife out of the way possibly saving her life. other witnesses say they saw folks panic and jump from the parade float. casey is live with more at the scene in midland, texas. this was one of two floats in the parade, right? >>casey: i will explain that in a second. but, first, right back there behind me the train in the last minute or so just started moving, the first time we have seen that since this accident.

obviously they have to clear the railway at some point but investigators point out they are in the infancy of the investigation. there were two floats totaled. one has successfully made it across the intersection and cleared it. as the second was going through that is when the accident happened. this was part of the 9th annual parade, "show of support" parade, loaded with veterans and their spouses en route to a banquet in their honor and that is when an eyewitness says as the second float made it across the train tracks, bells starting ringing and the gates came down. >> it was halfway across and it started as it came down it started hitting people and knocking people off and people started screaming and started jumping and it was the worst thing i have seen.

>>casey: there is no determination if the signals were properly working at the intersection. >>trace: they were concerned talking about the crossing gates this clearly raised a series of safety concerns. >>casey: if context, according to the federal rail association, there have been 266 fatal train versus vehicle accidents across the who will country just last year. 16 of those in the state of texas giving this state the third highest rate in america. back in 2003, union pacific railroad increased the train speed limit through this community from 40 miles per hour to 60 miles per hour and it is not clear how fast this was going last night. >>trace: thank you, casey. coming up, more on the growing violence between israel and hamas. officials at the united nations now urging for an end to the violence. thousands are now without jobs

after an american food icon is closing its doors. there is word that folks are rushing to stores to stop u.k. on twinkies and the like. oh, let me guess --ou see this? more washington gridlock. no, it's worse -- look, our taxes are about to go up. not the taxes on our dividends though, right? that's a big part of our retirement. oh, no, it's dividends, too. the rate on our dividends would more than double. but we depend on our dividends to help pay our bills. we worked hard to save. well, the president and congress have got to work together to stop this dividend tax hike. before it's too late.

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>>trace: middle east violence has left three israelis dead and 23 palestinians dead could drive

a women -- a wedge between the united states and egypt with the blood israel shed could be a "curse upon it" according to the egyptian president depicketting egypt as a protector of the minutes unlike the former egyptian president who had close ties to israel and opposeed hamas. jonathan hunt has the news. how critical is egypt's role here? >>jonathan: absolutely critical. there are two countries that have meaningful influence over hamas in the gaza strip. one is turkey. they have less influence than egypt. egypt's president's words are of extremely important and the signals he sends to those firing the rockets. that is the reason he sent his prime minister to the gaza strip today. it is a she of solidarity. the prime minister spoke his

condemnation of israel's actions and his support for the palestinians people. this is all being noted at the state department. they will not be drawn on any sort of judgment about the egyptian comments. >> i am not going to comment on the public statements he made. what i am going to say is what we have said here all along which is we want egypt, we are encouraging egypt, to use its influence on hamas. egypt made the decision that it would be helpful to send the prime minister to see what he could do. we have been in contact with them before. we have been in contact with them after. >>jonathan: she said that the public statements of the egyptians, so there is a possibility that those public statements are meant by the egyptian president for public opinion, something else is being done privately, something more in line with what the united

states would want. if not, that is very disturbing because it remakes the egyptian and israel relationship and could remake the entire middle east. >>trace: 180-degree shift. any chance of action at the united nations? >>jonathan: no. the security council is always completely hamstrung by disunity over the israeli and palestinian conflict. we had a statement, though, from the secretary-general which said essentially that all sides should stop the violence the he said and i quote, "a new cycle of blood shed will make neither israelis or palestinians more secure or will blood shed on the door to negotiations that could achieve the to-state solution necessary to end such violence permanently." another point on all of this, trace, we watch what is going on, on the south, between israel and gaza, hezbollah in the

northern border in lebanon, because in 2006 when the israeli soldier was kidnapped in gaza? israel went into gaza and was preoccupied and hezbollah took that opportunity to start firing rockets across the northern border and we know what happened with the war between hezbollah and israel that followed. >>trace: and now the managing director of the washington institute and former senior director for middle eastbound affairs -- middle eastern affairs. you heard what he said about the president of egyptian. does he want to be attached to hamas? >>guest: morsi is torn between his role as the leader of the muslim brotherhood which has been linked with hamas and as a president of egypt.

he is not helping palestinians in what he is doing because it is hamas that is bringing the suffering on the palestinians of gaza in contrast to the peace in the west bank under the palestinian authority. he is not acting in favor of egyptian interests because the same terrorist groups are targeting egyptian soldiers in the sinai, as well. >>trace: we saw back in 2006, israeli troops go into lebanon and push them back, is there an advantage in your estimation, of israeli troops going into gaza although it is only 19 miles long and two miles wide. what is the advantage? >>guest: well, trace, for starters, i am not sure israel wants to go into gaza but we are hearing they will stand down if hamas stands down. they do not want to escalate this. we are seeing preparations but

no final decision. the advantage is, if you have to do it to achieve your objectives, it is to get at the rockets, and the launch facilities, to get at the infrastructure. what is most important here, israel needs a clear sense of objectives in how to achieve them quickly and decisively which did not happen in 2006. >>trace: you send rockets to tel aviv or the outskirts of tel aviv and a rocket to jerusalem and that changes the game altogether and it increases the odds israel may have to take another step. >>guest: it is a grave escalation by hamas and puts palestinians at risk, not only in gaza bearing the brunt of the israeli retaliation, but, also, the palestinians who live in jerusalem and the minutes would live in individual averages around jerusalem so israel will regard this as an escalation and may respond in kind. >>trace: one of the most holy

sites of islam is in the holy city of jerusalem. thousands of folks are ready to lose jobs, hostess, makers of twinkie and ding-dongs suspended operations at all 33 plants. they threatened to shut down unless the strikin workers got back on the job but the workers profited after they filed for bankruptcy and they did not go back so the c.e.o.aidhehe compan could not survive the strike and they will sell their assets and lay off more than 18,000 of the employees. jerry wills joins us. how are the workers reacting? >>gerri: the company was able to reach a deal with the steam materials but not with the bakers union which represented 5,000 people. now, when the company officials said they would close the company doors, the folks at the

union said, we are not responsible for this, and they put out this statement, the crisis facing hostess brands is a result of decade of financial and operational mismanagement, that resulted in two bankruptcies, mountains of debt, declining sales and lost market share. >>trace: remember the twinkies lasted longer than the wrappers? >>gerri: this is open because jonathan hunt is sitting next to me can he was trying to get inside. you are right. these are supposed to last long. this package expires in a day by you can get they will sell these brand names because they are worth a lot of money and already we are seeing on websites and in the anyones all over the country recipes to make this yourself but my heart really goes out to those 18,000 workers who have in job now.

>>trace: buy now because the shelf life is 30 years. news they were shutting down sent some rushing to the stores to stock up. people in den very say the scene at a local bakery was crazy. watch. >> people with buggies filled with twinkies. amazing to see how many people want the twinkies. >>trace: someone else could buy the brands and make twinkies but betty crocker twinkies does not is the same ring. many folks are not taking chances. >> now there is a lot on tap for fox news sunday and anchor chris wallace joins us next. pe. just can't fit 'ein my budget.

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>>trace: today there was testimony from the former head of the c.i.a., general petraeus

who said he believed all along the deadly attack in libya was an acted of terror and said someone or some other group removed the word terror in the talking points of the c.i.a. but his agency approved them. with us now is chris wallace. it reminds me of the old game telephone where you his per in someone's ear and it depends to the end of the row it is a different story. by the time susan rice gets to your show it is a different story. >>chris: there are two big questions. first of all, is general petraeus' testimony on september 14th, he said high believes and told members of congress in the closed doors hearings he believed it was a stepper attack and one congressman, peter king head of the homeland security committee said that is not his recollection of what general petraeus said.

so, that is interesting. obviously, a discrepancy that has to be cleared up. and the other is, of course, the talking points. he said this is what the c.i.a. talking points were and talked about links to al qaeda and links to terror and the administration says when susan rice went on the sunday shows including fox news sunday she was told it was primarily the video and reaction to that and a demonstration that was hijacked by extremists. the big question is who rewrote the c.i.a. talking points? the intelligence community? the white house? we do not have an answer. >>trace: the politicians are on opposite sides of the aisle but i have never seen people go in the same hearings and come out with different conclusions. i saw the interview last night with senator chambliss and he said this is a political

statement, from what you have seen today do you think this is any way this is leaning, you being the judge of all things great in the political world? >>chris: no. i would not try to judge. we report. you decide. i don't know. a lot of the people on capitol hill don't know, either, who wrote the talking points. why were they changed? that is what we have to find out. i am surprised. they had all the key players, they had general david petraeus, and the director of national intelligence, they have been talking to them all week. i have no way of knowing who rewrote the talking points. if it was a coverup it was the most ineffective and worst coverup of all time because two days after susan rice spoke you have the head of the counter terrorism center saying it was a terror attack so it did not work well if it was a coverup. >>trace: now the fiscal cliff.

we had more lawmakers meeting with the president today. will they come to terms? >>chris: there is optimistic talk mostly from republicans, but to a certain degree do taught read too much. that could be a negotiating ploy by speaker boehner and the republicans to says look, we have been very reasonable, we put revenues on the table right from the start. if this falls apart it is all on the democrats. that is not a bad negotiating point. it is way too soon-to-be optimistic. ultimately they will avoid the cliff but we do not have good reason today to believe it will happen soon. >>trace: good to see you. chris anchors fox news sunday this week and will talk of the ongoing investigation into the attack in libya with vice

chairman of the senate intelligence committee and chairman of the senate homeland committee joe lieberman and the future of the g.o.p. with louisiana governor jindal and wisconsin governor caught walker this weekend on "fox news sunday." now, one of the areas that super storm sandy devastated and police in new york say they are concerned that looting could become a big problem. rick got to fly with cops who are taking measure to keep folks from becoming victims for a second time. he joins us live with the details from queens. how big of a problem is this? rick: it could be worse. if not for the aggressive tactics deployed by the police department. many houses had walls blown off and this house knocked off its foundation and the people cannot live in it but there is still

stuff inside so someone could steal the stuff so the in ypd is very aggressive to assist in keeping places safe. one of the helicopters took off, light, fast, used for field over the storm ravaged areas and it illuminates the darkened neighborhoods where power is knocked out, and it reminds people on the ground they are watching. >> we are the eye in the sky. we are here to sneak around at night without the light on to make sure the neighborhood remains safe. rick: there are a couple million of high-tech equipment clearing heat seeking equipment that reads heat signatures on the ground and transfers it to maps in the helicopter so the pilots who are police officers can see where people might be hiding without the lights on or

see where an evening incould be running and radio to police officers on the ground or police officers who could respond from the water from the harbor units and this is keeping the looting to a minimum. up 2 percent last week from a year ago, 236 arrests but it could have been a lot worse. >>trace: thank you from queens, new york. the coast guard report to people could be missing in the gulf of mexico after an motion is sparked a fire on an oil rig. it happened the day after b.p. agreed to pay record criminal penalties for the deep water horizon oil spill.

>>trace: a developing story

from the gulf of mexico and a search after an oil rig exploded this morning. it happened off the coast of louisiana 25 miles south of grand isle. houston-based black elk energy confirmed the blast occurred on their platform. the fire is now contained. they say they are using helicopters and boats to search for two people who are now missing. this blast comes a day after oil giant b.p. agreed to felony charges and record $4.5 billion settlement for the 2010 deep water horizon disaster. phil is live in south florida with more. what is the latest? phil: the search officially is continuing for those two workers. 11 of the workers that were taken by helicopter are being treated. several of them for very serious burns. the location of this oil-producing platform is 25 miles east, southeast, of grand

isle, louisiana. according to investigators, the cause of the fire appeared to be workers doing maintenance and cutting pipe on the platform. oil was spilled and it sparked the fire. the oil spill in the gulf of mexico is minimal it is believed. >> the platform was confirmed shut before they started work so it was in non-production lot form at the time. phil: a lot differences between this and 2 1/2 years ago, the b.p. deep water horizon, an exploratory oil rig which point was to find oil and seal it and cap the head. this platform was established oil-producing rig but not producing oil at the time. >>trace: thank you, phil, from south florida. more "studio b" after this.

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